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Growth and returns to new products and pack varieties: the case of UK pharmaceuticals

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posted on 2017-01-10, 09:52 authored by Anna Rita BennatoAnna Rita Bennato, Farasat A.S. Bokhari, Franco Mariuzzo
We use quarterly sales data from the UK pharmaceuticals market between 2003 and 2013 and estimate the impact of new introductions, i.e., new products and pack varieties within an anatomical therapy class on business unit growth. Using a dynamic lag adjustment growth model that accounts for endogeneity of new introductions, we find that a new product contributes to 18 per cent growth of the business unit while a new pack variety leads to 7 per cent growth for the business unit in the long run. Further, we find that there is significant variation in growth by size of firm and that the marginal effect of additional products on growth is larger for smaller business units. However, the marginal effect of pack varieties does not differ by firm size.

Funding

The authors wish to acknowledge the contribution of the ESRC who supported their research through Centre for Competition Policy funding (ref: RES-578-28-0002).

History

School

  • Business and Economics

Department

  • Business

Published in

14th Annual INTERNATIONAL INDUSTRIAL ORGANIZATION CONFERENCE

Citation

BENNATO, A., BOKHARI, F. and MARIUZZO, F., 2016. Growth and returns to new products and pack varieties: the case of UK pharmaceuticals. (Centre for Competition Policy working paper ; 16-1.) Norwich: UEA Centre for Competition Policy.

Publisher

UEA Centre for Competition Policy

Version

  • VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2016

ISSN

1745-9648

Book series

Centre for Competition Policy working paper;16-1

Language

  • en

Location

Boston

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